Consumer Products

Ascena shares down 4.9% after updating Q2 guidance to loss of 23 to 28 cents per share

Shares of Ann Taylor parent Ascena Retail Group Inc.
ASNA, -1.62%
slid 4.9% in premarket trade Monday after the company said it now expected a loss of 23 to 28 cents per share in the second quarter, despite holiday comp sales that were up 3%. The company previously provided second-quarter guidance of a loss of 25 cents to 15 cents. The increase in holiday comp sales "were offset by performance at our Kids and Plus segments," Ascena Chief Executive David Jaffe said in a statement. "At our Kids segment, Justice store traffic slowed as we moved through the holiday period, requiring aggressive clearance activity to address its highly seasonal specialty assortment prior to Christmas. And at our Plus segment, we have made substantive changes to the Lane Bryant apparel assortment to address fashion missteps from our prior quarter, and believe we will be better positioned as we move into Spring," he said. Ascena shares have gained 30% in the year to date, while the S&P 500
SPX, +1.32%
has gained 3.6%.

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